Seeing a failing spinning top short

Figure 6-18 shows a chart where spinning tops just keep failing. This chart is of the stock for Yahoo!, which carries the symbol YHOO. I've highlighted three spinning tops that appear after some small uptrends. Each fails pretty quickly and miserably.

Discovering More about Belt Holds

More single-stick patterns that depend on market context and offer outstanding trend reversal signals are belt holds. But wait — if you read Chapter 5, you and belt holds have already been introduced, although you may know them by a different name.

Belt holds are exactly the same as marubozus that have no wick on the opening end of the candlestick formation. As with the other patterns in this chapter, the difference is that the usefulness of belt holds as trend reversal signals depends heavily on the market environments in which they appear.

Figure 6-18:

Spinning tops on a Yahoo! chart that don't pan out.

Figure 6-18:

Spinning tops on a Yahoo! chart that don't pan out.

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